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First Move with Julia Chatterley
Vilsack: Aim is a way of Encouraging Private-Sector Partnerships; Aim for Climate Doubles Investments in Farming Innovation; Ukrainian Troops Enter Kherson after Russians Withdraw; Sale Included Works by Georges Seurat, Vincent Van Gogh; FTX Group begins Voluntary Chapter 11 Proceedings. Aired 9-10a ET
Aired November 11, 2022 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:00]
(COMMERCIAL BREAK)
JULIA CHATTERLEY, CNN HOST, FIRST MOVE: I'm Julia Chatterley, and we begin with "Breaking News" from Ukraine. Ukrainian forces are entering the key
City of Kherson this after Russian troops withdrew. A local official has confirmed the city is almost under Ukrainian control.
And residents have come out into the city Central Square and have raised the Ukrainian flag. I want to get straight now to Nic Robertson, who's
outside Kherson. Nic, and you've already been speaking to people who I think are amazed, elated at what we're seeing, what more can you tell us
about just how much control Ukrainian forces now have?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: They're getting stronger and stronger control. That's what we've seen through the day. And
indeed, late afternoon, we've been able to see what appear to us to be reinforcements, military reinforcements on their way south towards Kherson.
We've seen tanks, we've seen armored personnel carriers, we've talked to troops who were very confident about the operation.
We're very confident about the way that it's gone so far, they say that it's going according to plan. We talked to the residents in a town just
liberated by the Ukrainian troops just yesterday. Though, they were absolutely delighted with what the Ukrainian forces had done for them. They
were waving at us when we were driving in. And these people have been living under Russian control for about the last eight months or so.
The stories that they were telling us were harrowing. An old lady, a pensioner perhaps in her 80s told me that the Russians have threatened to
kill her threatened to bash her brains in. A young girl, 15 years old, and her mother were there as well.
She told us that she had been taken away kidnapped by the Russians over the last few days while they were here. She said they put a bag on her head,
took her to the basement of a house beat her. They wanted to know where Ukrainian troops were.
And she thought that she was going to be raped. The stories have been very difficult for people to live with here. There's a lot of emotion on the
streets today, people out seeing friends, relatives, neighbors, who they really hadn't been able to congregate with for a long time very emotional
reunions.
But I think there's a general sense of relief, a huge relief. The city in a strange way, the town rather, in a strange way was very quiet because
there's this relief, but you people don't know what's going to happen next. They've been so traumatized by what they've been through recently, the past
few weeks.
They worse with a lot of looting, the Russian stealing a lot of cars we saw the bank had been broken into and completely trashed in the town. So it's
been a very traumatizing period. And people really only just begins to come to terms with that sense of freedom, very happy with a young boy who was
the first one to raise the Ukrainian flag in the city as the Russians left, even though he said before the Ukrainian troops arrived.
And I think that's what we're getting a sense of in Kherson tonight as well. I think one of the interesting things that we've heard from the
Russian troops, they said that they pulled all their troops out as planned, and they had saved all their equipment. Well, I can tell you from what
we've seen here today, the Russians absolutely have not saved all their equipment.
We've seen a lot of it blown up by the side of the road, a lot of ammunition left behind and scattered. So the notion that Russia escaped
without losing equipment really doesn't bear up to scrutiny of the facts on the ground, Julia.
CHATTERLEY: Yes, there's so much in there, Nic. Firstly, I just want to point out what we've been showing our viewers, as you've been speaking is,
images, videos from social media. And one in particular that we were just showing was I believe Ukrainian troops was there carrying the Ukrainian
flag, walking.
I believe in Kherson and being greeted by crowds of people taking videos on social media. We're showing it again now, holding balloons, just to give
our viewers a sense of how the Ukrainian forces are being greeted, as they now come into what we're calling a liberated territory.
ROBERTSON: Absolutely euphoria, Julia. I mean, I've seen a lot of conflicts. And I can't remember a time when we drove into town, and
everyone was waving at us. They were outstanding at the end of their driveways, if you will, by the side of the road, waving at us.
And whenever they saw us, coming up and hugging the soldiers, well, old ladies were coming up and hugging us as well. I mean, it's very emotional
to be on the receiving end of it. So these troops who have fought hard to get there who've been in battle for so long.
The soldiers we were talking to earlier, you know, speaking about months and months on the frontline and now getting this, now being able to take
the territory back, now being able to liberate these people, now being able to reassure them that they're safe.
[09:05:00]
ROBERTSON: And to be able to be repaid is the wrong word. But given emotion, given that real overpowering sense of thank you and of gratitude,
and we appreciate what you've done. That's what we've witnessed here today. And I think this is what we're seeing in social media appearing now in
Kherson.
People are so relieved to have some certainty back in their lives that, you know, the accounts we've been Russians looting this idea that you could go
out of your house and you didn't know how you're going to be treated. A lady told us about filtration camps that the Russians have been taking
people away, beating them to try to find information out about where Ukrainian troops were. And this was a fear an ever present fear the lady
who told me that the Russians threatened to kill her threatened to bash her head in.
This was all predicated on trying to find out where Ukrainian troops were. This is what these people have been through over the last weeks and days
that huge level of uncertainty that huge lack of knowledge about what tomorrow will bring.
Will I even be able to go out to the shops to get the bread that I need or whatever it is? That the idea that you have, can happen, because the
Russians have been treating people here so badly in the past few weeks this is all coming out now. And I think we're going to hear an awful lot more of
it as Ukrainian troops really do secure these areas here.
CHATTERLEY: But this is just the beginning. And Nic, what you said just moments ago about your experience of being in this situation and seeing
somewhere that's been a conflict zone, a war zone liberated and then the reaction from citizens there. And your comparison I think, to what you've
seen in the past is so vital. One of the other videos that we were just showing there was a man climbing up to tear down a billboard that clearly
had Russian posters on that.
And a small girl promoting that this is or at least in Russia's eyes, Russian territory. And just to remind our viewers, this is one of four
regions that Russia claimed to have annexed. And even now I believe the Kremlin spokesperson still saying this region is part of Russia, it belongs
to Russia.
Nic, the importance, I think, also of this moment of the decision of Russia to pull out their troops. But it's still saying, at least on the surface,
look, this is part of Russia, and we've still annexed it. It's a huge humiliation, surely, for Russia.
ROBERTSON: Massive humiliation, we were just in one of the checkpoint bunkers that the Russian troops had been in just two days ago. They're left
in such a hurry that left their cattle they left their milk, their spoons, they left in a hurry. But it also left behind some of their newspapers,
these pro-Russian newspapers, full of propaganda that were published here and distributed among the Ukrainian citizens here.
Telling them about how they were all really Russians, how they were bringing in returning Russian symbols to Ukraine. All this sort of
narrative that Russia has been forcing on the people here, forcing them to accept that they were part of Russia. And telling them these are the
reasons that we believe it here are all the icons and statues and things that are important to Russia that we think are part of Ukraine as well.
And this has been, by and large, rejected by the population here who has not at all agreed with what's been imposed on them. But I've had no way to
challenge it, because those that chatter stood up and challenged, the Russian authorities were often taken away beaten. Some of them never
reappeared again.
We know some of them have been killed. So this is a huge humiliation for Russia to lose this. It's a humiliation for President Putin. It is a
political, you know, it is a political blow to President Putin has previously been seen as somebody who has a very, very smart and calculating
strategy to make Russia great.
This is what he sells to the Russian people and what they are witnessing here. Even those, you know, troops who are leaving what they've witnessed
here is that's not the case that they haven't withdrawn necessarily to save troops and save equipment. They've been driven out by the Ukrainians.
That's not a narrative; President Putin wants to be alive in Russia. If his troops had stayed on here longer there was the risk that the Ukrainians
would have been circled them. That message of failure here in Ukraine would have grown bigger.
So the Ukrainian officials believed that Putin cut his losses and pulled his troops out to save further embarrassment. But this nevertheless, is a
huge embarrassment and setback, and it hasn't yet been spun satisfactory by the Kremlin to really convince people.
[09:10:00]
ROBERTSON: All people in Russia, they got this right, they didn't. And this will be damaging.
CHATTERLEY: And obviously, as you point out, this is all happening very quickly it's moving very fast and just managing the message here, at least
for now and successful. What we're also hearing, in just the last few moments, Ukrainian intelligence officials are now saying to the remaining
Russian soldiers, you need to surrender. Nick, it goes to your point about the humiliation and to how quickly this is moving too.
Can we get a sense? And I'm hoping we can bring up a map just to point out once again, to our viewers the strategic importance of the location of
Kherson and also the importance not just as a port region. But the bridge, the main bridge across the Dnipro River that has been destroyed too.
Can you just lay out for us what we're talking about in terms of the geography? And perhaps where Russian troops are now? And to a conversation,
Nic, that you and I were having yesterday about the concern I think from Ukrainian officials about moving slowly into this territory because of the
danger of mines being left and about the location, still of Russian troops.
And I guess the risk of a strike from the rivers East Bank.
ROBERTSON: We have seen anti-personnel mines on the roads here today. We've seen unexploded ordnance, very dangerous ordnance lying around on the roads
in the wake of the Russian retreat. It is a concern the military here is trying to militate against that we have seen mind clearing equipment in the
area as well as pontoon bridges.
You know, that can be used to bridge over water that the Russians have blown the main bridges up. But I think you know where the Russians are
going is to the other side of the Dnipro River. The reason that it's important for the Ukrainians that they are pushed back on the other side of
the river is it is such a wide river.
It is a strategic line of defense for the Ukrainians to stop the Russians encroaching further because of course; Putin had planned to sweep all the
way across. At least the South of Ukraine and take the important port City of Odessa maybe cut the Capitol off or cut other parts of the country off
from the sea. So it is a strategically important a defensive line.
But for both sides now for Russia on the other side and it's not clear if Russia is going to take up positions from which they will shell across into
the City of Kherson, which will only be a matter of a few kilometers away. There's a real possibility that the Russian forces once retreated will
shell Kherson.
For example, they've been shelling the City of Mykolaiv, get some of the worst shelling overnight last night. Two parents were killed we understand
leaving a 16-year old boy without parents. And that was shelling on a city on residential neighborhoods from roughly the same places that Russia will
be able to Shell Kherson if they want to.
So this is something Russia can do. Ukrainians can take control of it. But it can still be under fire from Russia. And I think from a Ukrainian
perspective to have control of this is important strategically going forward to hold back the Russians and use it as a foothold to move forward.
CHATTERLEY: Yes, Nic, fantastic to get your insights, Nic Robertson, there. Thank you so much for that. I want to bring in Salma Abdelaziz now, who is
in Kyiv for us too. Salma, a huge moment as Nic was describing for the Ukrainian government and for the citizens there, I believe to see such
significant progress being made.
SALMA ABDELAZIZ, CNN CORRESPONDENT: I think Julia throughout this conflict, throughout this Russian invasion, what Ukraine has done time and time
again, is delivered surprises, right? This is a Military that was supposed to be fighting the Russian superpower, this mighty force; they were
absolutely supposed to be on the back foot. In the beginning of this conflict, it looked like there was no way they could gain back the ground
they lost in the beginning.
And a reminder, Kherson was at the very beginning in the first week of conflict touted as a victory. To see yet again in this sort of David in
style Goliath battle Ukraine when in moving as quickly as it has, that is going to give huge support to everyone in Ukraine. Not just those on the
frontlines, but here in Kyiv, where people have been suffering from power outages where people have been spending hours in the dark, where they've
been cut off from water, where they've had relatives and family fighting on those front lines.
That's a huge morale boost and for President Zelenskyy, who has promised, has vowed time and time again to win back every inch of Ukraine. He seems
ever closer to that promise with this victory. And you can't back down again, as you heard our colleague Nic Robertson there his excellent
reporting, right by Kherson the strategic importance of this area.
[09:15:00]
ABDELAZIZ: Right there, that land bridge that connects Crimea to the rest of those Russian occupied territories, a huge victory, Julia.
CHATTERLEY: Continue to follow the breaking news from that region. Salma Abdelaziz in Kyiv there, thank you so much for that. Stay with CNN, we're
back after this.
(COMMERCIAL BREAK)
CHATTERLEY: OK, welcome back to "First Move", and delegates at COP 27 continue to talk about ways to slow at climate change. The U.N. backed
study says more than 1/3 of greenhouse gas emissions caused by human activity stem from producing, processing and packaging food. It just shows
how crucial it is that the food industry itself addresses sustainability and embraces Green Innovation.
And that is the aim of AIM. AIM is the Agricultural Innovation Mission for climate. It was launched last year at COP 26 by the United States and the
United Arab Emirates. And this year, AIM says it will double the value of investments to a total of $8 billion.
The coalition has 275 partners worldwide, including the governments of Ukraine candidate Ghana, and the EU, among many others. And joining us now
is the U.S. Secretary of Agriculture, Tom Vilsack. Secretary Vilsack, fantastic to have you on the show once again!
Let's start just by describing in your words what AIM is? And what this increased investment will mean?
TOM VILSACK, U.S. SECRETARY OF AGRICULTURE: AIM for climate is really an effort to try to accelerate innovation into the space of sustainable
agriculture and food production. We know that we have to accelerate the pace, we have to do more, we have to do it faster. And this is a way of
encouraging private sector partnerships, public private partnerships to accelerate that innovation.
And we're seeing significant response. As you mentioned, 275 partners, we now have over 30, innovation Sprint's these are concerted specific
partnership programs designed to put particular work at action in terms of climate smart practices. So it's been extraordinarily successful, we
obviously have to do a lot more, and we have to do it as fast as possible.
CHATTERLEY: Couldn't agree more as the initial 4 billion promised, I mentioned, you've doubled it. But let's talk about the 4 billion first. How
much has been loaned out already? And is any of these grants because among the conversations that I have with farmers, and it's not just in the United
States, it's beyond this?
Look, if we have a bad crop that fit, we can't afford to repay loans. So the last thing they want to do is take out a further loan for even for
innovation and for increase crop yield.
[09:20:00]
CHATTERLEY: If it means that the risks that they take on a too great.
VILSACK: That's right well the aim for climate effort is a 3 to 5-year initiative. So these resources are going to be spent and invested over a 3
to 5-year period. I will tell you that in addition, aim for climate; individual countries have their own initiatives.
We have the Partnership for climate smart commodities that just recently announced $2.8 billion of investments in farming activities and climate
smart agriculture, doing exactly what you just said, which is providing the resources to farmers to reduce the risk of adopting climate smart
practices. We believe that there's an opportunity not only to be productive, but also profitable when it comes to climate smart practices.
And so we're putting resources into aim for climate, we're also putting resources in enhanced research.
But we're also making sure that we're providing the resources to farmers. And we're going to take the results from all of this and share it with the
rest of the world; we just announced a climate hub, which is going to be a virtual platform for the sharing of best practices and information. So
whatever we learn, whatever we know works or doesn't work, we're going to be prepared to share it with the rest of the world.
CHATTERLEY: Yes, but I can read between the lines here and you recognize at least here in the United States. That it does have to be in certain parts
at least grant based, rather than loan based in order to, for people to be able to split the risk of taking on the cash required in order to invest.
Just give us a sense of what proportion of U.S. farms, farmers; ranchers are utilizing some form of climate smart agriculture or food system
innovation today. And how do you see that changing between now and 2025?
VILSACK: Well, just to give you a sense, we launched a cover crop initiative a couple of years ago. Now 40 percent of American farming,
acreages involved in some form of cover crop. CHATTERLEY: Wow.
VILSACK: So it's been expanding rapidly because farmers understand and appreciate a couple of things about climate smart. They know it's going to
improve the soil, they know it's going to improve the water quality; they know it's going to improve their productivity. And now what we're doing is
making the case that will also improve their bottom line.
It's going to qualify them for ecosystem markets, which enables them to be paid for carbon sequestration and climate benefits that they'll be able to
accrue. They're going to convert agricultural waste into a variety of products that creates new ingredients for which they will be paid. So
there's a whole new set of revenue streams.
And I think that's the important message here, which is when you have a voluntary incentive based grant based program, farmers are going to
respond. And when they learn about the benefits, the financial benefits of this, you're going to see wide adoption. We got a lot to learn, we got a
lot to share, and we're anxious to get to work.
CHATTERLEY: And I like the idea of him being rewarded for increasing sustainable practices or using climate spot technology. If net pays you and
perhaps means more output, higher crop yields, and perhaps lower prices too, in order to finance that. Then it should be a net-net win if you can
make it happen correctly.
VILSACK: Oh, that's right. And the resources that we're putting into play in the U.S. We know we're going to be able to continue this investment,
because of the passage of the inflation Reduction Act, which contained an historic amount of additional revenue for conservation practices. We've
identified 45 different separate climate smart practices that we're going to encourage with these resources, nutrient management, rotational grazing,
cover crops, irrigation systems that are more precise, use of technology.
There are just endless opportunities here. And I think the key here is to make sure that we focus on the opportunity side of this. We all know the
challenge. But now we need to make sure that folks understand the opportunity side.
CHATTERLEY: Even just understanding the challenge, I think is an important step you mentioned it. I think it confused a lot of people simply in the
name with the inflation Reduction Act. But it was ground breaking in terms of climate investment and financing. Assuming that the Democrats lose
control of Congress, even if it's just the house, and of course, it's all unknown at this stage. Is it fair to assume there'll be no further funding
over the next two years?
VILSACK: Now, here's the beauty of this, the resources that we're using, we're using them based on what farmers, ranchers and producers in the U.S.
have asked us to do. And this is a constituency of really both parties. And they've based basically said very clearly use the resources and
conservation. Use the various conservation programs, use what we call the commodity credit Corporation, which is another program, use those resources
to help us be climate smart.
So this is being driven, not by Democrats or Republicans. It's being driven by farmers, by ranchers, by producers and when it's driven by folks at the
local level. It's a lot more sustainable, both from an environmental standpoint, but also a political standpoint.
CHATTERLEY: Yes, it should transcend the politics of whichever party to your point. You and I a year ago were having a similar conversation and we
were talking about food price, inflation and the impact on consumers and we've seen that pay havoc really fit for many households across the
country. What's your view on where we are today?
[09:25:00]
CHATTERLEY: And can you give us any sense of your outlook of where food price inflation is headed?
VILSACK: Well, the good news is at least in the U.S., we're seeing a slowing down of the accelerated rate of food inflation. The last couple of
months, we've actually seen a rate of inflation significantly less than what we saw in the previous six months. So that's a trend that we think is
going to continue, we think there's going to be a normalization that's going to take place over the next couple of months.
So that's the good news. But the challenging news is that world supplies continue to be a bit tight for many reasons, tight because of climate,
tight because of weather conditions, tight because of the uncertainty in Ukraine. All of these factors are playing into a tightening supply, which
obviously, we want to be able to address.
That's why more acres are going into production in the U.S. That's why we're trying to figure out ways to double crop on acreage. So that we can
do our part and making sure that the world still continues to have an adequate supply.
CHATTERLEY: Sir, fantastic to have you on the show. Thank you so much and great to chat to you about the investment and more climate tech required, I
think all over the world. Great to talk to you, sir, thank you. The U.S. Secretary of Agriculture, Tom Vilsack there, thank you. We're back after
this.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back and let me recap our "Breaking News", from Ukraine where her Ukrainian forces are entering the City of Kherson following the
withdrawal of Russian troops. A local official says the key city is almost under Ukrainian control. Ukrainians have raised their flag in the main
square as you can see in these images.
And Ukrainian intelligence officials are also urging any remaining Russian troops to surrender. Salma Abdelaziz is in Kyiv for us Salma, a huge moment
for Ukraine, a humiliating moment for Russia?
[09:30:00]
ABDELAZIZ: I think this is a victory that will just mean so much to every single Ukrainian, Julia. I mean, throughout this conflict, you've heard
over and over again from Ukrainians that they stand together, that there's a sense of solidarity that they are bound together by this fight against
President Putin.
And you see that on the front lines that morale boost that troops have had throughout this conflict, that they feel they are fighting for something
that they have the backing of their nation, of their people of their neighbors of their families and friends whereas you don't see that on the
Russian side.
Oftentimes, when we're covering conflict, we talk about weapons, we talk about who has more troops and who has tougher weapons in this conflict, it
has been so much about emotion about what a country is fighting for. And that's why this is going to mean so much, Julia, because it gives that
boost yet again, especially when you think about President Zelenskyy's promised to his people that he's going to win back every inch of Ukraine
that brings him ever closer to that goal.
And you look on the Russian side and imagine just six weeks ago, President Putin was signing a decree in this glitzy ceremony vowing that Kherson will
forever be a part of Russia. And then just again, six weeks later, having to withdraw having to pull out, you look at the disproportionality of that
and you think, gosh, how will they sustain this fight? And how much does this help boost Ukraine's fight Julia?
CHATTERLEY: Yes. Much more work to be done, however, for now Salma Abdelaziz thank you so much for that. Joining us now is CNN Military
Analyst Cedric Leighton, Cedric great to have you on the show once more your assessment of what we've seen over the past few hours in particular.
COL. CEDRIC LEIGHTON (RET.), CNN MILITARY ANALYST: Well Julia, good morning. It is a really profound day for Ukraine. And Salma was just saying
this is part of the momentum that the Ukrainians need in order to sustain their war effort. They have promised that they would do this President
Zelenskyy, of course mentioned this in his remarks over the last few days.
Several other Ukrainian officials have done this. And when you look at it from a military perspective, Julia the big thing that you see here is a
movement to consolidate everything on that Western Bank of that Dnipro River for the Ukrainians.
This gives the Ukrainians a lot of leverage when it comes to any type of military movements in the future, and even eventual peace talks because
they will have proven that not only can they take - but they can hold that territory, and that's going to be a very, very big thing for them. Now,
there are some dangers out there. But for the moment, this is a very big thing for the Ukrainians.
CHATTERLEY: There's a lot in that. Colonel Leighton just explain because I remember right at the beginning, when this war started, we discussed the
concept of invading somewhere being very different from being able to hold it over a long period of time.
And I think that's what we're seeing playing out here simply the challenges of holding foreign territory, and all the issues that we discussed and
challenges for the Russian troops in particular.
COL. LEIGHTON: Yes, that's exactly right, Julia. And, you know, when you look at it, you know, taking territory that is not yours, even if historic
be, you know, previous armies of the Soviet Union and of Imperial Russia had taken these territories, it is not the same thing as actually
controlling your own territory.
And the Ukrainians have shown that, you know, in spite of all the disparities in weapon, weaponry between both of these sides, the Ukrainians
are at a major disadvantage numerically compared to the Russians, both in terms of personnel and in terms of the actual weapons systems that they
have.
But the fact is, the Ukrainians have been very innovative in their tactics and in their strategies, and that innovate with this, you know, Elon, in
essence, that the Ukrainians have, has made a really big difference in the way in which they've carried out this war, when you're fighting for your
own territory you're a completely different force that needs to be reckoned with by an invading military force.
And this is exactly what we're seeing here. The Russians have no reason to be there at the tactical level. And that is something that you know, they
failed to translate their strategy into meaningful tactics, they have failed to hold these territories. And it is very important for the
Ukrainians to prosecute their gains, especially before the winter comes.
CHATTERLEY: You pointed out the strategic importance of the Dnipro River as well. And we know the main bridge across that river has also been
destroyed. Just you mentioned earlier, as well, the challenges now even for the Ukrainian forces as they re-enter this region.
Just give us a sense of what your understanding is now where Russian troops are and we were talking with Nic about this earlier, the risk perhaps of
strikes from the east of the river now, even if they're not present Russian troops, they can still strike using missiles and of course they've probably
left minds as Nic was saying earlier behind too so there's plenty of challenges surely.
[09:35:00]
COL. LEIGHTON: Yes, there certainly are. And you know, one of the things you'll get to look at is not only what they're doing in the east, so with
the Russians are putting up defensive positions on the Eastern Bank of the river and on the map, it looks like it's the South Bank, but it's called
the Eastern Bank of Dnipro.
And what they will be doing is they will be attempting to hold that territory. And they're also trying to make it difficult for the Ukrainians
to cross the river. The bridge that you mentioned, that is a key movement point, it's very logical for the Russians to have blown that bridge up.
It protects their retreated, allows them to consolidate their forces in the east, on the eastern bank, and that allows for them to potentially either
keep that territory or move forward once again into that part of the Kherson region that they've just abandoned.
Now, the other thing to think about is the Cocopah Dam, which is north of this area, on the Dnipro River, if that is blown, that could present a
significant challenge for the Ukrainian forces that are coming into this part of the Kherson region.
So this is - these are some of the challenges that are out there are sabotage possibilities there also possibilities for the Ukrainians to run
into not only the minds that you mentioned, but also units, straggling units of Russian forces, some of which will be addressed in civilian
clothes, and they may not be abandoning their will to fight completely.
So these are dangers out there doesn't mean that the Ukrainians can't hold the territory, but they need to be aware that these things are out there
and I'm sure they are.
CHATTERLEY: And we just heard from Ukrainian intelligence officials as well saying to those remaining Russian soldiers that they should now surrender
to your point, the loss of the bridge, of course, means that their escape back towards the east is also blocked, potentially too.
We'll continue to watch this. I just want to get your take. We've just got this video from Kherson of scores of residents out in the streets, and they
yelling glory to the armed forces of Ukraine. I don't think we can underplay the importance of morale for this moment your thoughts on these
videos and images?
COL. LEIGHTON: Yes, that's exactly right Julia, when you see these images, you know, it kind of reminds me of what the German civilians said, after
World War II, when the Americans and I British and other allied forces came into Germany, to take that country from the Nazis.
This is somewhat similar to that. And the Ukrainians that are clearly the independent hope, the ones who stayed behind in Kherson, under Russian
occupation, and they did it in a way that was really helpful to the Ukrainian military.
And you can tell the other relief that they're feeling right now. Freedom is a powerful force and the lack of freedom for those people who have known
that freedom and have it taken away means a lot.
This means a lot, and it means that they will fight for it in various ways. Some of them are aggressive, some of them more passive but this is what
we're seeing here. We're seeing this amazing relief that these people have been able to be liberated by the Ukrainian military.
And it really makes a big difference for them, and it makes a big difference for the Ukrainian nation. This is a big victory for Zelenskyy
and for the Ukrainian Armed Forces.
CHATTERLEY: Colonel Leighton, thank you so much for your insights as always. We're going to take a quick break here on CNN. I'm going to leave
you with those images of Ukrainian forces being greeted by those residents in what could be the appropriately called "Freedom Square".
(COMMERCIAL BREAK)
[09:40:00]
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: And million 120 million 120 million fair warning, selling otherwise to use his telephone the Montana - at $120 million.
Congratulations received.
(END VIDEO CLIP)
CHATERLEY: Wow! $120 million plus, let's be clear the hammer falls at Christie's in New York at the largest single owner sale in auction history
spanning over 500 years of art. The collection owned by the late Microsoft Co-Founder Paul G. Allen raised over $1.6 billion.
It ranged from George Serra to Vincent Van Gogh, the sale which spanned two days was live streamed to more than 2.4 million people and that's the
record too. I have to tell you, I managed to squeeze into a very packed auction room on Wednesday night and the atmosphere was electric.
And you know, beyond the beauty of the art, which was a moment in itself. The knowledge that the proceeds will go to charity was pretty amazing, too.
And I'm pleased to say, Guillaume Cerutti is Christies' CEO, and he joins us now. Wow, again! What an amazing night? I just wonder if you've stopped
smiling, actually, over the past few days. It's a huge achievement.
GUILLAUME CERUTTI, CEO, CHRISTIE'S: Thank you, Julia. I think it was, as you said, an electric night, a night to be remembered for a very long time.
So many, you know, excitement in the room, great bids from all over the world a total figure that really exceed all expectations and everything
going to charity so what a night, a beautiful night for art for philanthropy and for Paul Allen's legacy.
CHATTERLEY: Yes, I was about to say, I mean, it was a legacy collection of art. When I went to see it on Tuesday, there was a queue right around the
corner far beyond Christie's itself so it generated huge excitement.
But for me really the sort of cherry on the icing of what was a monumental cake was to your point, the fact that we knew the proceeds of this was
actually going to some of his philanthropic causes and to charity ultimately. Is that why there was on top of everything else so much
excitement and so many records broken?
CERUTTI: I think so. I think you know, it's always difficult to explain the success of sale, but that's because there is something non rational when
it's about collecting desire, art, but I think three parameters could explain the success the tremendous success of the sale.
The first one is the quality of the artworks. It was extraordinary. Five works sold for more than $100 million masterpieces by the greatest masters
from old master painters to contemporary artists from - charity to --. That's the first thing.
The second thing is of course, the figure of Paul Allen. A genuineness someone very generous amount of passion also the you know, an American
story someone who started from you know, Seattle and established this created Microsoft with Bill Gates and then build this collection and many
other things.
He wanted a better word so I think the figure of Paul Allen is the other explanation for the success of this sale and the public success for this
sale. You know, you mentioned the queue, you know, going for I'm from Christie Rockefeller Center to Sixth Avenue. We've never seen this before.
It was really moving to see so many people wanting to see the collection.
[09:45:00]
CERUTTI: And the third aspect is the fact that the every, you know, penny, all the proceeds were dedicated and going to charities. So these three
ingredients, probably explain the success of the sale or part of the success of the sale. But after this, of course, the magic is about the
auction and the fact that the demand and art lovers were so numerous in the sale.
CHATTERLEY: I mean, we just - we are now just showing you images of that little tiny mobile there of Alexander - which is just incredible to me. We
could go on about the art, but there was a key word in there that I think many of my audience will have latched on to.
And that was the irrationality when we're talking about this level of money, however much and however beautiful they are, I think there will be a
lot of people going this is just an astonishing amount of money.
Can I ask? Firstly, how much of it was already guaranteed going into this? Because I think this gives us a sense of sort of where we are in the world
when this kind of - this amount of money is being spent. But also, who did the buying? Where was it coming from? We mentioned tens of different
countries bidding, or people from different countries who bought in the end?
CERUTTI: Yes, so bidders and buyers were very well split between the three major regions, Americas, of course, for about 40 percent Europe and the
Middle East for 30 percent, and Asia and Pacific so it was a global sale with participation from all over the world.
And you're right some works were holding guarantees meaning that even before the sale, some clients committed to assure us that they will be in
the sale. So that's a way you know, to secure, you know some bids in advance and to start the sale.
You know, our clients, they love competition. So when they see that someone is already interested in a work, because this person has given a guarantee,
or bid before the sale, that trigger even more excitement. That's the way the market works for masterpieces.
These clients don't want to miss the opportunity to buy a masterpiece because they know that another opportunity is not going to come on the
market in you know so quickly so that the way this market work at the top end.
But besides this, this collection was also very deep. 160 works in total two days of sale so there were much more than only you know these
masterpieces, there were a diversity of artworks a collection that was extremely coherent with the eye of Mr. Allen, you know, with some themes
nature, Venice, were some of these obvious themes in the collection.
And these also talked to other collectors, they love to see that beyond the collection beyond a masterpiece, there was also a vision and a taste from
another collector. And that's what happened with the sale.
CHATTERLEY: You know, I think there's something else that if people were lucky enough to see this. You've managed to blend I think the ethos of
Microsoft and the focus on sort of digitization you could digitally go and just pick on a picture with these big screens and do a deep dive on the
artwork, which was fascinating.
And I think you've been a trailblazer in many ways for some part of the future about the digital art the NFTs. We all know that that sector of the
market, particularly this week with crypto has been pretty challenged.
How do you tie this sort of digital focus now of Christie's the online sales that you see the Metaverse the future of web three, with the sort of
longer term vision of Christie's? Can you tie it all together for me?
CERUTTI: Of course, the art market has dramatically changed over the last years. You know, five years ago or 10 years ago, an auction sale was a
classical theater experience. You know, people were in the room. There was an auctioneer on the restroom, and everything was happening in the same
room.
Now it's completely different. The digital, the online bidding is extremely important. The way we prepare a sale globally, with our digital tools
allowing people to see works in three dimensions, or sometimes now also, instead of shipping works, you know, showing all grams of works as
radically changed the way the markets work.
So it's a revolution. Today, there are less people in the room more following online. You mentioned the number of several millions of people
following the auction deal tonight and tens of thousands of them being active during this sale.
[09:50:00]
CERUTTI: So that's - revolution in what we do. Of course, the NFT aspect is another layer. But it adds to this transformation of the art market towards
something more digital. The physical aspect remain, we are talking about artworks, the physical experience of the artwork is extremely important.
But digital tools and innovation give another engine to this market. And that's why I believe the market is so strong today.
CHATTERLEY: Yes, I mean, the holograms are amazing, because wherever you are in the world, you can get a physical 3D sense of the art that perhaps
you're buying that's on the other side of the world. So, yes, digital in many forms in this space, and it plays to a broader audience as well.
We could have a whole conversation about that separately and we shall, because I've run out of time. Guillaume, thank you so much for joining us
today and congratulations, and congratulations to all the charities that benefit too and the art owners amazing!
CERUTTI: Thank you Julia. Thank you so much.
CHATELEY: The CEO Christie's there. OK, coming up the saga of crypto trading firm FTX and its one pipeline CEO Sam Bankman-Fried, taking a
dramatic turn, even just in the past few moments, the very latest after this.
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CHATTERLEY: Welcome back to "First Move"! U.S. stocks extremely volatile in early trade but the major averages still holding on to a lot of the strong
gains we saw yesterday session after that encouraging inflation print. Of course the direction seemingly seems to have turned.
Bitcoin volatile too, amid word within the past few moments that leading crypto exchange FTX has now filed for bankruptcy. Sam Bankman-Fried
stepping down as CEO as well FTX needed billions to stay afloat and couldn't find a last minute white knight, a high profile chapter 11 on the
11th of course. Paul R LA Monica is here. What a stunning turnaround for this company, Paul, and at the core of it, I think the use of client
assets?
But the idea now that there is no white knight out there and a lot of people saying he was the white knight, this company was the white knight
over the past few months. What on earth happened?
PAUL R LA MONICA, CNN REPORTER: Yes, this really is a shocking, rapid fall from grace for FTX and Sam Bankman-Fried as you point out Julia; this is a
company that was trying to prop up the broader crypto space by investing in some struggling Bitcoin related firms.
And then all of a sudden, they needed help because they had a hedge fund unit that was operating at the same time as their crypto exchange Alameda
that has been shut down. There were hopes briefly that Binance a rival was going to bail them out almost like JP Morgan buying Bear Stearns many, many
years ago at the start of the great financial crisis, but then that deal fell apart. And as you said, there were no other white knights were willing
to step in.
[09:55:00]
MONICA: So now we have FTX filing for bankruptcy. Sam Bankman-Fried is leaving the company; this is going to have ripple effects I think on a lot
of companies within the crypto universe. Coinbase stock is down today pretty sharply. Robinhood is down.
And keep in mind Julia Sam Bankman-Fried bought a stake in Robinhood. What happens there? This is an FTX bankruptcy, not a personal bankruptcy. But,
you know, you have to wonder if Sam Bankman-Fried's financial situation can't be pretty promising right now, either.
CHATTERLEY: I mean he became one of the biggest Democratic Party donors in the midterm elections as well. So I mean there's so many angles here that
we could discuss minute by minute. Paul, I'm sure we're going to be talking about this next week. Thank you.
MONICA: I agree.
CHATTERLEY: --and beyond. Paul R LA Monica thank you for that! OK, that's it for the show. If you've missed any of our interviews today, they will be
on my Twitter and Instagram pages. You can search for @jchatterleycnn. In the meantime, "Connect the World" with Richard Quest is up next.
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